Ann: Disposal of Rail Rental Wagon Fleet, page-2

The end of a disastr0us deal in which Coote Industries (CXG, now EGN) bought used old rolling stock, refurbished  them, and sold them to Greentrains, and entity that was registered on 26 June 2008, and which had no funds. CXG leased back the rolling stock, but it ended up acquiring Greentrains as a compromise in lieu of payment. Had all gone well, Greentrains and CXG would have both made a profit, which raises the question of why was cash-strapped Greentrains involved. There was a nexus between Greentrains and a Coote-family-linked entity called Orange Grove Brickworks Pty Ltd, which you can find by Googling the key words.

The CXG's paper profit on that deal at the close of FY2008 made CXG  looked good from an earnings perspective, and the Accounts Receivable looked healthy. The  FY08 Annual Report (see http://www.onlineannuals.com.au/coote/pdf/CooteAnnualReport08_Final.pdf) was bullish, and the SP rose to about $1,50, if my memory serves me well. I am unsure what the SP's high point was, but I think it was circa $3.13 in late calendar year 2007, a year after it floated at $1.00, but it dropped back to $1.00 in FY2008 when the GFC impacted most SPs.

The FY08 Annual report is interesting from a lipstick-on-a-pigs-arse perspective. Look at the comments in respect to Greentrains.